EG 2

Module 2 Ethics (E&G)

Ethics and governance
Module 2 Ethics
Question 1
Which one of the following advertising strategies is allowable for members of CPA Australia under its ethical rules?
a.
b.
c.
d.

Outlining the qualifications of the firm’s partners.
Indicating that a favourable taxation ruling is likely.
Including unsubstantiated endorsements from leading businesspeople.
Comparing your services as superior to those of your major competitors.

Question 2
Which one of the following statements is not a relevant reason for an accountant to liaise with their predecessor when accepting a professional assignment?
a.
b.
c.
d.

It is a matter of professional etiquette.
To avoid the appearance of solicitation.
To determine whether the professional fees charged were adequate to avoid threats to due care.
To identify whether there are professional reasons why the appointment should not be accepted.

Question 3
Which fundamental principle of professional and ethical conduct is described by the phrase ‘having the courage of one’s convictions’?
a.
b.
c.
d.

Integrity.
Objectivity.
Confidentiality.
Professional competence and due care.

Question 4
Which one of the following describes a heuristic approach to decision-making?
a.
b.
c.
d.

Decisions are based on decision rules or rules of thumb.
Decisions are in compliance with an ethical code of conduct.
Decisions are based on the application of an ethical decision-making model.
Decisions are based on a deontological approach that considers intentions to be important.

2014 (Edition 14a)

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Module 2 Ethics (E&G)

Question 5
In a conflict of interest situation, to whom is the accountant’s first obligation?
a.
b.
c.
d.

The client.
Themselves.
The community.
The government.

Question 6
In which one of the following situations is the duty of confidentiality most likely to be breached?
a.
b.
c.
d.

When information is disclosed in a court of law.
When information is disclosed in response to a formal investigation by CPA